C42: OF TRUSTS

Canon: OF TRUSTS

Chapter: C42 ADMINISTRATION

Provincial Trusts’ Board

1. There shall be a Provincial Trusts� Board for the purpose of exercising powers on behalf of the Provincial Synod for the management, control, and disposal of property.

Constitution

2. This Board shall consist of the Metropolitan and other diocesan bishops, and the Registrar of the Province, as ex officio members, one clerical and two lay members elected by their Houses in the Provincial Synod, and one lay member nominated by the Provincial Pensions Board, who shall hold their office until the next session of the Provincial Synod. Provided that the lay member nominated by the Provincial Pensions Board may appoint an alternative representative to represent him or her at any meeting of the Provincial Trusts� Board at which the member is unable to be present, and such Alternative Representative shall have the right to speak and vote at such meeting.

Bishops’ Commissaries

3. Every bishop who is a member of the Board shall be entitled to appoint a special commissary to attend on his or her behalf, in his or her absence, at all or any meetings of the Board. Such commissary shall have the same powers at such meetings as the other members of the Board.

Chairman

4. The Metropolitan shall chair the Board. In the absence of the Metropolitan the Board shall elect its own chairperson.

Secretary and Treasurer

5. A secretary and treasurer shall be appointed by the Board, subject to removal, as ex officio Provincial Secretary and Treasurer of the Board, who shall be responsible to the Board for the due custody of all provincial moneys, the keeping of proper books and accounts, the attendance at, and the keeping of proper records of, all meetings of the Board, as well as attending to all financial and secretarial matters connected with the said Board, and such other duties as the Board shall from time to time require. The secretary and treasurer shall be required to give such reasonable security for the due performance of his or her duties as the Board may from time to time consider necessary.

Quorum

6. The presence of four members of the Board shall be necessary to constitute a quorum. And for the exercise of any of the powers vested in the Board, the signature of the Metropolitan or his or her commissary, of the Registrar of the Province (or the Secretary for the time being), and of one other member of the Board, shall be always necessary.

Vacancies

7. In case of a vacancy in the office of either of the two members elected by the Provincial Synod, the Board shall appoint a person to the vacant office until the next session of the Provincial Synod.

Powers

8. (a) The powers belonging to the Provincial Trusts� Board shall be those designated in Articles XVIII and XIX of the Constitution and in the several clauses of Schedule A, annexed thereto, as belonging to a board authorised to act on behalf of the Provincial Synod.
Pursuant to clause 9 of Schedule A, the Provincial Trusts� Board is empowered to invest:
(i) in stocks and fully paid-up shares (including rights to acquire such shares) in any body corporate;
(ii) in futures, options or any other derivative investment instruments, provided that the extent of such investments in relation to each portfolio is within the limits established from time to time by the Provincial Trusts� Board, which limits shall be ratified annually by Provincial Standing Committee;
(iii) for investment purposes, in the purchase and/or development of immovable property within the Province of Southern Africa;
(iv) for ecclesiastical purposes, in loans to dioceses for the purpose of the purchase and development by such dioceses of immovable property within these dioceses, at an interest rate on such loans which shall not be lower than a rate fixed for this purpose by the Provincial Trusts� Board from time to time, and
(v) in banks and building societies; provided that no such investment under points (i), (ii) and (iv) shall be made unless they have been approved by recognised investment advisers.

Scope

9. The Provincial Trusts� Board shall exercise all the aforesaid powers with reference to the endowments of the several bishoprics (as soon as these endowments can be transferred to its charge) and to all other property given or acquired for the benefit of the Church of this Province which may be entrusted to it.

Reports of Provincial Synod

10. The Provincial Trusts� Board shall lay before the Provincial Synod at every session, whether ordinary or special:
(a) Report of Proceedings;
(b) Return of Stock and Capital of every kind belonging to the trusts under its direction, and
(c) Certified Copy of the Minutes, except such parts as contain mere matters of detail.

Subcommittees

11. The Provincial Trusts� Board shall set up such subcommittees as are necessary to care for specific assets of the CPSA and thus help in the fulfilment of Canon 42.10(b).

Diocesan Trustees

12. (a) Every Diocesan Synod, or Diocesan Trusts� Board appointed by such Synod, shall be the body authorised to exercise, on behalf of the Provincial Synod as delegated from the Provincial Trusts Board, the powers designated in Articles XVIII and XIX of the Constitution and in the several clauses of Schedule A, annexed thereto, in respect of property given or acquired for the benefit of the Church in that Diocese. The delegation of the powers of the Provincial Trusts Board referred to in Canon 42.1 shall automatically pass from the transferor Diocesan body to the transferee Diocesan body upon the transfer of any district from one to the other, or upon the creation of a new Diocese out of one or more existing Dioceses, or upon any alteration of any Diocesan limits.

(b) Pursuant to clause 9 of Schedule A, diocesan trustees are empowered to invest in accordance with section 8(b) of this canon: provided that the investment advisers shall have been approved by the Provincial Trusts� Board; provided further that diocesan trustees obtain the prior written permission of the Provincial Trusts� Board in respect of each investment in futures, options and other derivative investments instruments referred to in section 8(b)(ii) and that any such investments be made subject to such limits as may be imposed in loans by the Provincial Trusts� Board, and provided further that investments in loans to dioceses in terms of section 8(b)(iii) shall at no time exceed such percentage of the total investment held by such trustees as may be determined by the Provincial Trusts� Board.

Methods

13. All diocesan trustees shall carry out the objects of the trust in such manner, not inconsistent with the terms of the trust, as the several Diocesan Synods shall from time to time direct.

Basis for Trust Deeds

General Directions
14. Every trust deed formed and administered under the direction of any Synod, board, committee, or other body, acting on behalf of the Provincial Synod, shall refer to the Constitution or Deed of Association of the Church of the Province of Southern Africa as the basis of the trust.

Auditors and Bye-laws

15. Every Synod, board, committee, or other body, acting on behalf of the Provincial Synod as aforesaid, shall appoint auditors for the trusts in its charge, and generally will have power to make, and shall make, all rules and bye-laws which may be necessary to give full effect to all the provisions of the Constitution affecting the trusts under its management.

Rules

16. The following rules shall be applicable to all trusts under which property for the benefit of the Church of this Province is, or may be, held on behalf of the Provincial Synod:

Leases

(a) Any trustee or trustees, if so empowered by the Synod, board, committee, or other body by which he or they may have been appointed, may lease property on such terms as shall be agreed upon between the lessors or lessor and the lessee, the proceeds arising from such leases to be applied under the direction of the Provincial Synod, or of the Synod, board, committee, or other body acting in its behalf, to the purpose contemplated in the trust.

Hypothecation

(b) Any trustee or trustees, if so empowered by the Synod, board, committee, or other body by which he or they may have been appointed, may raise money on the security of, and mortgage, any property held by him, her or them.

Expectations

(c) The money so raised, or the proceeds of such mortgage, shall be applied to the purpose contemplated in the trust upon which the property is held, provided always that this rule shall not apply to any property where the trust upon which the same was transferred prohibits the raising of money thereon or the mortgage thereof, nor to any property which has been consecrated or on which there has already been erected a consecrated church.

Social Regulations

(d) The Provincial Trusts� Board shall, after consulting the various Diocesan Trusts� Boards in the Province, draw up, and may from time to time amend, rules and regulations for the guidance of Provincial and Diocesan Trusts� Boards in matters relating to the mortgaging of Church properties, provided always that provincial and diocesan trust funds shall not be lent on the security of diocesan or parochial property.